Union Tax
Union Tax There is only one mandatory Union Tax , a 5 % sales and service Tax on everything sold or on every service rendered. 4 Additional there is a 3 % voluntary tax only to be paid if a citizen feels satisfied with his government. There are no tax requirements and no tax audits for private citizens. However private citizens 1 may not buy or sell anything or offer any services exceeding 500 Credits a month. The Union trusts its citizens but other citizens might ask a seller or service provider for its business permit or Sales recorder 2 Citizens abusing the system are quite rare and those who are reported to do private business and not paying the sales/service tax, have a chance to explain themselves and pay the taxes. Repeated offenders are stripped Citizen rights 3. Taxes are not a big issue and there is no designated Tax Enforcement agency (for private persons)5 as over 89 % of all Union Citizens pay the 3% voluntary tax and the booming economy makes it possible to sustain all the Federal Agencies and services. Even Union Services and agencies pay taxes, the Navy pays tax on every ship, every boot and every gallon of MolGas they need. No one is exempt, the Union law does not recognize Non for Profit organizations. Even churches and similar organizations pay the 10 % service tax for every credit they collect. There may be additional local taxes. 1 Non Citizens and Union Residents are not allowed to sell anything or offer paid services, unless they obtain a Business / service licence, just like Citizens must. 2 A sales recorder is a form of Credit Strip obtainable at any Union Court, that automatically deducts the sales/service tax. 3 Citizens become Residents, Residents become Non Cits. Non Cits caught selling / providing services have a chance to pay of the owned taxes or are incarcerated and have a chance to work of the owed taxes in federal Community work programs. 4 Basic food items used to be tax free, but since the Union Tax reform of 3122, there are no tax exemptions. As no Union Citizen faces poverty or hunger and families or family like structures with lots of off spring earns additional income from the Cradle booster programs. The Assembly felt it was not the Citizens task to provide tax free food to Non Cits or Residents. 5 Business Taxes are subject to enforcement. There is no Special agency but a Department of the FederalPolice that governs business licences, business taxes and revenue control and enforcement. Note: the Narth have until recently not bought anything and rendered no services to anyone, therefore they did not pay taxes. The Neo Vikings on Nilfeheim pay taxes every time they sell something off planet and it is automatically added to the Xchange transactions.(Most businesses including Hogun's Inn are Union registered businesses and while many Neo Vikings don't even know they pay their share) Category:United Stars of the Galaxies